As inflation rises year on year, many people tend to find it difficult to boost their rate of savings. However, savings are an essential component of personal finance and serve as a safety net during emergencies. Fortunately, there are some unique and creative ways that you can utilize to increase your savings and build up your savings account, as listed below:
Consider freelancing/temporary gigs.
One of the most effective ways you can boost your savings rate is by actually increasing your income through freelancing or temporary gigs. In today’s digitally driven world, many people have started taking up online freelance projects or temporary gigs in their spare time to boost their savings and income. For example, many who work a full-time job during the week use their weekends to take up freelance projects related to their fields, such as website design, graphic design projects, writing projects, etc., and earn a decent amount that they can put away into their savings account.
Use cash instead of online payments.
UPI and debit/credit card payments have become commonplace, and almost every shop accepts online UPI/Card payments these days. However, people can quickly lose sense of how much money they are spending, as spending a large amount of money can happen at the click of a button. By paying for your purchases in cash, you will be more conscious of how much money is actually being spent. This will help in curtailing unnecessary purchases and make you more aware of your spending habits.
Choose an appropriate savings account.
Once you have a decently sized corpus of savings, ensure that you deposit it into a savings account that offers a healthy savings account interest rate. Look for reliable banks that provide the highest interest rate so that you can earn maximum returns on your savings. In the long term, the higher rate of interest will help you compound your savings significantly, year on year.
Opt for multiple savings accounts.
Having more than one savings account makes it easier to segregate your financial goals into different accounts and track the progress of each goal. For example, you could open one to create an emergency fund, another for your daily expenses, and a third one to fund short-term aspirations.
Another benefit of opening multiple savings accounts is the opportunity to take advantage of competitive savings account interest rates offered by different banks. Many lenders provide varied perks and benefits with their savings accounts, and you can opt for those that fit your lifestyle and financial goals.
Savings account hacks – Start growing your savings
To sum up, you can boost your rate of savings by being conscious of your spending and finding small avenues to cut down on unnecessary expenses. By gradually increasing your savings and coupling it with multiple high-interest savings accounts, you can ensure that you will accumulate a significant corpus over time and improve your overall financial health.
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